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EBRD and EU in Eastern Partnership countries

08 Aug 2017

The European Bank for Reconstruction and Development (EBRD) works closely with the European Union to support small businesses, spur economic reform, improve infrastructure and municipal services and promote green energy.

The European Bank for Reconstruction and Development (EBRD) works closely with the EU to support small businesses, spur economic reform, improve infrastructure and municipal services and promote green energy.

Georgia, Moldova and Ukraine have signed Association Agreements with the EU that foresee the establishment of a Deep and Comprehensive Free Trade Area (DCFTA) with the EU.

This prospect of free trade with the EU – the world’s largest market – offers many new opportunities for businesses in these countries. The EBRD and EU provide access to finance and advice to help them improve production and processes, adapt to EU standards and become more competitive abroad. In Ukraine, we also set up a dedicated network of business support centres for this purpose.

Fashion House Materia from Georgia was one of the first firms to benefit from the EU4Business-EBRD Credit Line – a joint initiative between the two institutions to boost economic development and market opportunities. The company modernised its equipment and introduced best health and safety practices for a newly built clothing factory.

“The finance helped translate into reality our ambition of running a company with high European standards,” said Lado Giorgadze, CEO of Fashion House Materia.

Keeping cities on the move, while preserving the environment, has long been at the heart of the EBRD’s and EU’s work. We financed improvements to the metro system in Yerevan, Armenia, funded a fleet of new, green trolleybuses in Chisinau and Balti, Moldova, and are now introducing the first electric buses in the region of Batumi, Georgia. These are just some of the locations where we have made people’s daily commutes easier and more comfortable.

The EBRD’s Green Cities Framework aims to develop energy efficient and modern municipal services across its region in a bid to improve citizens’ well-being.

The EBRD has taken major steps to help clean the wastewater flowing into Lake Sevan (one of Armenia’s landmarks) and to secure a reliable water supply to local communities. This has improved wastewater treatment for five municipalities around the lake. The EU supported the investment through co-financing and a grant.

“I have always been fascinated by books because they change people’s lives,” said Nigyar Kocharli, sitting in Ali and Nino, her book café in central Baku.

Ms Kocharli is among the very few businesswomen in Azerbaijan, where only 7 per cent of business owners are female. She wanted to grow from a small- to a medium-sized company, so she turned to the EBRD’s Advice for Small Businesses team. It helped her make the management of her businesses more efficient through various IT solutions. This work is funded by the EU4Business initiative.

With 3.5 million inhabitants, Moldova has a limited internal market and the success of many entrepreneurs depends on export opportunities. That is why the EBRD has partnered with the EU and the European Investment Bank to finance improvements in Moldova’s road network.

Over 830 km of key roads are being upgraded so that businesses can transport goods to markets abroad more easily and drivers and passengers can have safer journeys.

More than 60 per cent of Moldovan exports go to the EU – making it by far Moldova’s most important trading partner.

The EBRD’s Advice for Small Businesses team brought the company into contact with a local expert, who analysed its competition. He also created a successful website which helped the company to develop new business partnerships with European exporters.

Vinaria din Vale has now expanded its offer and exports to Italy, Poland, Denmark, Romania and the USA, Canada, China and Japan. The project was funded by the EU4Business initiative.

The EBRD’s work on nuclear safety has contributed to the success of one of the most ambitious projects in the history of engineering: securing the site of the 1986 Chernobyl nuclear accident with the giant arch known as the “New Safe Confinement”. It is the largest moveable land-based structure ever built.

The EU has been by far the largest donor to the EBRD-managed nuclear safety funds with €2.437 billion.

With funding from the European Union, the EBRD worked with ScienceSoft, a software producer from Belarus, to diversify its client base to more than 24 countries and expand its business through a merger.

The EBRD put the company in touch with an adviser from Ireland who helped it define a strategy for increasing sales in European markets.

We launched a programme to support reforms within Ukraine’s public administration through the EBRD-managed Ukraine Stabilisation and Sustainable Growth Multi-Donor Account, to which the EU is the largest donor. Reform Support Teams, consisting of professionals from outside the civil service, work in various ministries to help implement priority reforms.

As part of the wider support architecture in Ukraine, the fund also finances Ukraine’s first Business Ombudsman Council. This institution helps fight corruption to improve the investment climate and promotes the principles of fairness, openness and accountability within the public sector.